BENGALURU: Even as the state government pushes for ease of doing business, small traders across Bengaluru say they are being forced to follow labour compliance rules designed for large companies, making it increasingly difficult for them to run day-to-day operations.
Many of these traders, who operate with just 3-5 employees, say they are expected to maintain extensive registers, file regular returns, and meet documentation requirements meant for businesses with dedicated HR teams and digital systems. With limited staff and basic infrastructure, small shop owners say these rules are both financially and practically burdensome. Some are even hesitant to hire new workers, fearing penalties or inspections over minor lapses.
Speaking to TNIE, traders said they want the labour department to ease these norms for establishments with fewer than 10 employees, warning that such overregulation goes against the government’s own goal of boosting employment and supporting micro-businesses. Trade activist Sajjan Raj Mehta said a union of small traders has also submitted an appeal to Labour Minister Santosh S Lad, highlighting the difficulties these shops face. He added that expecting micro-establishments to comply with the same set of rules as large enterprises is unfair and unsustainable.
“Most small shops have no trained HR staff or digital infrastructure. Still, they are expected to maintain separate registers for attendance, wages, and leave, display mandatory boards, and file returns under various labour laws. For a setup of 3-5 people, this is excessive,” Mehta said, adding that the pressure to comply with complex norms is discouraging shop owners from hiring more staff, directly affecting job creation in the informal sector.
The appeal also raised concerns about alleged harassment by local labour inspectors. Traders claim that minor technical lapses are often treated as violations, leading to undue pressure and threats.
Lokesh S, a member of Karnataka traders group, demanded that there should be simplified compliance for shops with fewer than 10 employees, with the possibility of exemption from maintaining multiple registers.
“Measures like a one-page combined register that includes key information like attendance, wages, and weekly offs, digital-friendly options such as a mobile app, non-punitive record-keeping, especially for those without access to HR systems should be in place,” Lokesh said.
